LONDON: Copper prices jumped on Monday to the highest in nearly a month after top metals consumer China said it would take more action to boost its lethargic economy.
The three-month copper contract on the London Metal Exchange (LME) gained 1.4% to $9,246 per metric ton by 1515 GMT, the highest since Nov. 12. US Comex copper futures climbed 2.2% to $4.25 a lb. Copper had been slightly weaker ahead of the announcement by the Chinese Politburo that it had shifted its monetary policy stance to imply more easing is coming.
“It highlights that the Chinese economy has been on the back foot for a while and clearly needs some additional support. The market liked the prospects for that,” said Ole Hansen, head of commodity strategy at Saxo Bank in Copenhagen.
“These are words so the question is how much action will be provided before they have an understanding of how the (potential US) tariffs will impact their economy.”
US President-elect Trump has pledged to impose additional 10% tariffs on imports from China while investors have been disappointed about the lack of aggressive fiscal stimulus measures by China. Ahead of the announcement, the market was weighed down by data showing persistent disinflationary pressures in China.
The most-traded January copper contract on the Shanghai Futures Exchange (SHFE) rose 0.3% to 74,740 yuan ($10,269.30). Among other metals, LME aluminium rose 0.4% to $2,614 a ton, zinc climbed 2.5% to $3,147.50, lead rose 0.8% to $2,087.50 and tin gained 2.2% to $29,785 while nickel was little changed at $16,040.
Comments
Comments are closed.